Brazilian vehicle output climbs in 2004

Brazilian vehicle output climbs in 2004

Brazilian vehicle output reached 2.2 million units in 2004, revealing a rise of 20.7% due to the rising exports and rebounding domestic economy. Domestic sales rose by 10.5% to 1.6 million vehicles as the economy grew by 5% and due to interest rate cuts during the first half of the year, according to the Brazilian Motor Vehicle Manufacturers Association. In addition, overseas sales increased by nearly 52% to $8.3 billion on the back of aggressive exports. Vehicle production amounted to 185'000 units in December, revealing a decline of 8% compared to the previous month. In 2005, vehicle production is expected to reach 2.3 million units with a rise of 5.4%. The modest rise will be fuelled by slow economic growth in Brazil.